| Economic sectors |
|---|
| Three-sector hypothesis |
| Primary sector: raw materials Secondary sector: manufacturing Tertiary sector: services |
| Theorists |
| Colin Clark · Jean Fourastié |
| Additional sectors |
| Quaternary sector · Quinary sector |
| Sectors by ownership |
| Business sector · Private sector · Public sector · Voluntary sector |
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state. By contrast, enterprises that are part of the state are part of the public sector; private, non-profit organizations are regarded as part of the voluntary sector.
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A variety of legal structures exist for private sector business organizations, depending on the jurisdiction in which they have their legal domicile. Individuals can conduct business without necessarily being part of any organization.
The main types of businesses in the private sector are:
In countries where the private sector is regulated or even forbidden, some types of private business continue to operate within them.
The private sector employs the majority of the workforce in some countries. However, in some countries such as the People's Republic of China, the public sector employs most of the workers.[1]